A CARDIFF firm specialising in representing consumers mis-sold payment protection insurance (PPI), has been boosted by a £2.1m investment.
Give Me My Money (GM3) has been backed by an undisclosed institutional investor. The firm was advised by Cardiff headquartered corporate finance firm Gambit on the deal.
Founded in 2008, GM3 is a compliance-led financial claims management and dispute resolution company.
The business currently specialises in advising consumers who have been mis-sold PPI, which has affected millions of borrowers in the UK.
A recent judicial review on PPI by the High Court found in favour of the Financial Services Authority, a decision which has been accepted by the UK’s leading banks, which have made provisions of almost £6bn to settle claims.
The development capital will be used for marketing and to recruit 50 additional staff to support the company’s growth plans. It currently employs 16.
The business is led by managing director, Steve Bloor, supported by a strong non-executive team. Mr Bloor has an extensive track record within the financial services sector, which includes leading the compliance function of prominent financial institutions.
Gambit’s advisory team was led by Frank Holmes and Simon Williams who both have significant experience in the financial services sector.
Mr Bloor said: “This is an important transaction for us which enables us to fulfil our ambitious growth plans. We expect over the next 2-3 years to become a major player in the financial disputes resolution sector”
Simon Williams, director at Gambit said: “GM3 is a highly professional financial services business with a strong management team, operating in a segment where there is a significant market opportunity. This provides a robust platform to develop a market-leading dispute resolution service.”
THE financial sector has so far paid out £215m in compensation to victims of mis-sold payment protection insurance (PPI) in the first half of the year, the City regulator has confirmed.
The industry returned £102m in May and June after the British Bankers’ Association (BBA) lost its High Court challenge against PPI compensation rules being applied retrospectively, the Financial Services Authority said.
The figures, published to allow firms and consumers to keep tabs on the progress being made with compensation, are based on 16 firms, representing 92% of PPI complaints made in the six months to June.
Huge levels of PPI redress are expected in the coming months as Lloyds Banking Group set aside £3.2bn to cover compensation, Royal Bank of Scotland made a provision of £850m, HSBC recorded a £270m hit and Barclays allocated £1bn.
PPI covers debt repayments if the holder is unable to work due to an accident or illness, or if he or she loses their job.
The PPI mis-selling scandal is likely to be the biggest the UK has seen, with the final compensation likely to dwarf the £4.5bn paid to people who were wrongly sold personal pensions and the £2.7bn paid to victims of endowment mis-sell ing.
The Financial Services Authority has pledged to publish monthly data on PPI compensation.
